Central Governments Restrictive Step Cause 75% Decrease in Gold Import
During April, the first month of the current fiscal year 2014-2015, Gold import has descended by 75% when compared to last year. The gold import got reduced from 678 Crore Dollar to 175 Crore Dollar.
Various
measuring step introduced in the dome of gold import by both the Central
government and Reserve Bank of India, states the reason behind this reduction.
Commercial
Deficit
Due
to the decline in Gold import during April month, commercial deficit in between
the commodities import and export has fall by 43% i.e., reduced by 1,008 Crore
Dollar.
During
the fiscal year 2012-2103, the gold import has showed a tremendous high rate of
830 ton. On its continuation, the variation between the foreign exchange
migration and budget and the current account deficit ranges at a high rate of
8,820 Crore. This accounts for 4.8 % rise in the domestic production during
this fiscal year.
Due
to the rise in the current deficit, the rupee value got decreased and the
import of crude oil, cereals, cooking oil got hiked.
Central
government, in order to balance the current deficit, has raised the gold import
tax by 10%. By January 2012, this has been availed only 2%. Also government has
put check on the import of both gold coins and gold medals.
